Chapter 8- Product Concepts

Question 1

WHAT IS A PRODUCT?

Answer 1

everything, both favourable and unfavaourable, that a person receives in an exchange
-Tangible or intangible

Question 2

TYPES OF CONSUMER PRODUCTS: Business products

Answer 2

used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers

Question 3

TYPES OF CONSUMER PRODUCTS: Consumer products

Answer 3

is bought to satisfy an individuals personal wants

• convenience products
• shopping products
• specialty products
• unsought products

Question 4

Consumer products : Convienence product

Answer 4

relatively inexpensive item that merits little shopping effort– the consumer is unwilling to shop extensively for such an item

Question 5

Consumer products : shopping product

Answer 5

usually more expensive than convenience product and is found in fewer stores. – comparison of several brans or stores, depends on style, price, and lifestyle compatibility. –consumers are willing to invest more time in this purchase

Question 6

Consumer products : specialty product

Answer 6

consumers search extensively for a particular item and are very reluctant to accept substitutes

Question 7

Consumer products : unsought product

Answer 7

a product unknown to the potential buyer or a know product that the buyer does not actively seek

Question 8

Product item

Answer 8

is a specific version of a product that ca be designated as a distinct offering among an organizations products

Question 9

Product line

Answer 9

a group of closely related product items forms a product line

Question 10

Product mix

Answer 10

• includes all of the products that an organization sells.

    ○ Product mix width : refers to the number of product lines an organization offers
           --Product mix depth : is the number of product items in a product line .

Question 11

Product modification

Answer 11

changes one or more of a products characteristics :

	○ Quality modification - change in the products depenability or durability
	○ Functional modification : change in a products versatiliitly, effectiveness, convenience, or safety
	○ Style modification: aesthetic product change, rather than a quality or functional changed.

Question 12

Repositioning

Answer 12

involves changing consumers’ perceptions of a brand

Question 13

Product line extension

Answer 13

occurs when a company’s management decides to add products to an existing product line in order to compete more broadly in the industry.

Question 14

Product line contraction

Answer 14

company cuts down its product lines.

Question 15

Brand

Answer 15

is a name, term, symbol, design, or combination of these that identifies a seller’s products and differentiates them from competitor’s products

Question 16

Brand name

Answer 16

–> is that part of a brand that can be spoken including letters, words, and numbers.

Question 17

Brand mark-

Answer 17

elements of a brand that cannot be spoken

Question 18

Product identification

Answer 18

ability to distinguish your brand from others.

Question 19

Brand equity

Answer 19

refers to the value of company and brand names

Question 20

Global grand

Answer 20

used to refer to brands where at least one third of the product sales are outside the home country or region.

Question 21

Repeat sales

Answer 21

branding helps consumers identify products they wish to buy again and avoid the ones they do not

Question 22

Brand loyalty

Answer 22

a consistent preference for one brand over all others.

Question 23

Benefits of branding

Answer 23

1. product identification
2. Repeat sales
3. New product sales

Question 24

Manufacturer’s brand

Answer 24

-name of the manufacturer (Fruit of the loom, Nike)

Individual brands- companies use different brand names for

Question 25

Private brand

Answer 25

name owned by wholesaler or a retailer- (presidents choice-Loblaw's, master craft- Canadian tire)

Question 26

Individual brands

Answer 26

companies use different brand names for different products--when their products vary greatly in use of performance

Question 27

Family brand

Answer 27

companies use same brand for many different products.

Question 28

Cobranding

Answer 28

involves placing two or more brand names on a product or its packaging 1. Ingredient branding 2. cooperative brand 3. complementary branding

Question 29

Ingredient branding

Answer 29

identifies the rand of a part that makes up the product (Reese's piece blizzard)

Question 30

Cooperative branding

Answer 30

occurs when two brands receiving equal treatment(in the context of an advertisement) borrow on each other's brand equity. (air Canada promotion second cup coffee)

Question 31

Complementary branding

Answer 31

where products are advertised or marketed together to suggest common usage, such as a spirits brand (Seagram's) and a compatible mixer (7up)

Question 32

Trademarks

Answer 32

Is the exclusive right to use a brand or part of a brand. Others are prohibited from using the brand without permission. In Canada trademarks are register under the Trade-marks Act

Question 33

Service mark

Answer 33

performs that same functions for services, such as H&R Block and Weight watchers.

Question 34

PACKAGING Packing functions

Answer 34

1. Contain and protect products ○ 2. Promote products ○ Identifies the brand ○ Lists the ingredients ○ Specify features ○ Provides directions. ○ Use of designs , colours, shapes, and materials to influence consumers perceptions and buying behaviour. 3. Facilitate the storage , use and convenience ○ Easy to store and move ○ Nice to buy and be able to store easily in home. 4. Facilitating recycling and reducing environmental impact

Question 35

Labelling : 3 types

Answer 35

persuasive labeling informational labeling universal product codes

Question 36

persuasive labeling

Answer 36

focuses on a promotional theme or logo, and consumer information is secondary.

Question 37

informational labeling

Answer 37

is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.

Question 38

universal product codes

Answer 38

bar codes that are read by computerized optical scanners that match codes with brand names, package sizes, and prices, also print information on cash register tapes and help retailers rapidly and accurately prepare records of customer purchase, control inventories, and track sales.

Question 39

when entering global market with existing product, a firm has three options for handling the brand name:

Answer 39

1. One brand name everywhere. ( Coca-Cola) 2. Adaptions and modifications : adapt to language and culture so name is not offensive 3. Different brand names in different markets. D

Question 40

WARRANTY

Answer 40

protects the buyer and provides essential information about the product- warranty confirms the quality or performance of a good of service ○ Express warranty- is a written guarantee Implied warrant- unwritten guarantee that the good or service is fit for the purpose for which is was sold.